Yatsen Holding Reports Strong Q1 2025 Performance

Yatsen Holding Ltd. ( (YSG) ) has released its Q1 earnings. Here is a breakdown of the information Yatsen Holding Ltd. presented to its investors.

Yatsen Holding Limited is a prominent China-based beauty group known for its diverse range of skincare and color cosmetics brands, including Perfect Diary and Galénic, and operates extensively across online and offline platforms in China.

In the first quarter of 2025, Yatsen Holding Limited reported a significant improvement in its financial performance, with a 7.8% increase in total net revenues reaching RMB833.5 million. The company also provided updates on its share repurchase program, reflecting its strategic focus on enhancing shareholder value.

Key highlights from the earnings report include a notable 47.7% increase in net revenues from skincare brands, which now constitute 43.5% of total net revenues. The company achieved a gross margin of 79.1%, up from the previous year’s 77.7%, and significantly narrowed its net loss by 95.5% to RMB5.6 million. Additionally, Yatsen reported a non-GAAP net income of RMB7.1 million, marking a substantial turnaround from the prior year’s non-GAAP net loss.

Yatsen’s strategic focus on new product development and brand building has been instrumental in driving growth, particularly in its skincare segment. The company has also managed to reduce operating expenses, contributing to improved financial results. With cash and short-term investments totaling RMB1.28 billion, Yatsen is well-positioned to continue executing its strategic plans.

Looking ahead, Yatsen’s management remains optimistic about the company’s growth prospects, anticipating a year-over-year revenue increase of 2% to 12% in the second quarter of 2025. The company is committed to sustaining its momentum and exploring new opportunities in the beauty market, supported by its robust financial position and strategic initiatives.